Paraguayan President Fernando Lugo has greenlighted a US$19mn loan agreement with OPEC's Fund for International Development (OFID) to modernize and restructure the country's urban transport system and central government offices.

The public works and communications ministry (MOPC) will carry out the project, and work with the finance ministry to adopt legal and administrative measures to implement the project, the presidential website reported.

MOPC is also in talks with legislators and other authorities to create a new transport ministry responsible for defining, implementing and regulating policies related to transport in all its forms, BNamericas reported previously.